The strong run of the BHP Billiton Limited (ASX: BHP) share price continued during trade on Thursday.
At one stage the mining giant's shares reached a two-year high of $29.54.
Why are its shares at a two-year high?
As well as its solid full-year result which saw revenue increase 24% and profit rise 192%, investors appear to be scrambling to get hold of the mining giant's shares amid bullish forecasts for the global economy in 2018.
With the global economy predicted to grow 3.7% in 2018 by many economists and research firms, this will be the strongest growth seen in seven years.
Unsurprisingly this has led to a number of commodity price upgrades from brokers, leading many to believe that BHP Billiton, Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG), and Santos Ltd (ASX: STO) are poised to deliver strong profit growth.
Is it a buy?
While all the aforementioned resources shares could potentially outperform the market next year, I still have a preference for BHP Billiton even though it is at a two-year high.
This is because I'm reasonably bullish on petroleum, iron ore, and copper prices in 2018. These three commodities accounted for 81% of its earnings before interest, tax, depreciation, and amortisation in FY 2017. So if they perform well then BHP Billiton's performance should continue to improve.
Ultimately I expect this to lead to solid share price gains and an increase to its generous fully franked dividend next year.